2020 Excelligence Benefits Guide (final)

2020 Benefits Guide

Welcome to Your Excelligence Learning Corporation Benefits! You are an important part of our team at Excelligence Learning Corporation, and we appreciate your hard work and dedication. Because you play such an important role in our success, we are pleased to provide you with the resources you need to protect and care for yourself and your family. Your benefits program offers everything you need to stay healthy – physically, mentally and financially. We understand that your benefit needs change as your life changes. That’s why we offer flexible plans that fit every stage of life. We invite you to learn about your options, so you can make the most of the benefits available to you. As you know, information is key when it’s time to make important choices. In this guide, you’ll find details about your benefits program. We encourage you to carefully review the plans and select the right coverage for your unique needs. 1

Table of Contents Benefit Basics ........................................................................................................................ 3 Healthy Living, Happy Life...................................................................................................... 4 Understanding the Benefits Lingo .......................................................................................... 6 Medical Coverage – Healthy Body, Healthy Mind ................................................................... 7 Medical Plan Comparison ...................................................................................................... 9 Prescription Drug Coverage ................................................................................................. 10 How the Health Reimbursement Account (HRA) Plan Works ................................................ 11 How the Health Savings Account (HSA) Works ..................................................................... 11 Flexible Spending Accounts (FSAs) – Lower Your Taxes......................................................... 13 Dental Coverage – Something to Smile About ...................................................................... 14 Vision Coverage – Focus on Your Eyesight............................................................................ 15 Medical, Dental and Vision Contributions ............................................................................ 16 Life and AD&D – Protecting Your Loved Ones....................................................................... 17 Voluntary Disability Coverage – Prepare for the Unexpected ............................................... 19 Additional Voluntary Benefit Plans ...................................................................................... 21 Voluntary Legal Services – Support When You Need It ......................................................... 22 Voluntary Pet Insurance – Health Care for Your Pet, Too...................................................... 22 Discount Programs .............................................................................................................. 23 401(k) Retirement Plan – Savvy Saving for a Secure Future .................................................. 24 Questions? Contact the Benefits Experts:............................................................................. 26 Benefits Helpline ................................................................................................................. 27 Women’s Health & Cancer Rights Act (WHCRA) ................................................................... 28 Newborns' and Mothers' Health Protection Act ................................................................... 28 Premium Assistance under Medicaid and the Children’s Health Insurance Program (CHIP) ... 28 Medicare Part D – Creditable Coverage................................................................................ 32 HIPAA Notice of Special Enrollment ..................................................................................... 35 Notice of Privacy Practices................................................................................................... 35 Continuation Coverage Rights Under COBRA........................................................................ 44 2

Benefit Basics Benefits Helpline This guide provides a summary of your Excelligence Learning Corporation benefit options and is designed to help you make choices for coverage. If you would like more information about any of the benefits described here, please contact the Willis Towers Watson Benefits Helpline at 833-744-1218 (Business Days, 9 AM – 5 PM PST) or [email protected]. Eligibility Active, full-time employees working at least 30 hours per week are eligible to participate in Excelligence Learning Corporation’s benefits program on the first of the month following your date of hire. Your dependents are also eligible for many of the plans you choose for yourself. Proof of dependent status may be required to enroll. Eligible dependents include: • Your legal spouse or domestic partner Adding a Dependent? • Your natural, adopted, or stepchildren up to age 26 regardless of student If you are a new hire, you or marital status may be required to • Your dependent children of any age, if disabled and incapable of self- provide proof of dependent eligibility support due to mental or physical disability (child must be disabled prior to when adding any reaching age 26). dependents to coverage. Examples of Enrolling in Your Benefits documentation include: • Birth certificate You have three opportunities to enroll or make changes: • Tax documents 1. Within 30 days of your date of hire • Marriage certificate 2. During the annual open enrollment period 3. Within 30 days of a qualified change in family status. Examples include: a. Marital status change (marriage, divorce, or legal separation) b. Birth or adoption of a child c. Death of a dependent d. Loss or gain of other health coverage for you and/or dependents e. Change in employment status f. Change in Medicaid/Medicare eligibility for you or a dependent g. Receipt of a Qualified Medical Child Support Order (or other court order) Enrollment Changes Our benefit plans are effective January 1 - December 31. There is an annual open enrollment period each year, during which you can make new benefit elections for the following year. Once you make your benefit elections, you cannot change them during the year unless you experience a qualified change in family status. Please note that coverage for a new spouse or newborn child is not automatic. If you experience a change in family status, you have 30 days to update your coverage, or you must wait until the next annual open enrollment period. 3

Healthy Living, Happy Life Medical Care Whenever and Wherever You Need It At Excelligence Learning Corporation, we understand that balancing work, life, finances, relationships and health can be overwhelming. We’ve made it Cigna provides access to two a priority to help you achieve that balance, so you can live the healthiest life telehealth services so you possible. That’s why we designed our benefits package to meet these needs. can choose: We hope you take advantage of the wonderful health and wellness programs available to you. MDLIVEforCigna.com 888-726-3171 Telehealth – Your Connection to Better Health AmwellforCigna.com Skip the waiting rooms and scheduling hassles. Telehealth services through 855-667-9722 Cigna puts you in control of when and where you access care. You may speak with a licensed physician 24/7/365 via phone or computer. These phone consultations and online video visits give you direct access to a licensed medical professional who may be able to: • Define treatment of common medical conditions, such as colds, flu, bronchitis, allergies, rashes, depression, and more • Provide specialist referrals • Prescribe medication To schedule an appointment, call Amwell at 855-667-9722 or MDLIVE at 888-726-3171 or go online to AmwellforCigna.com or MDLIVE forCigna.com. Preventive Care Visits – Free Check-Ups Once a Year Preventive care visits are important to your overall health. Routine checkups and screenings can help you: • Avoid serious health problems • Build a relationship with your doctor • Set and reach health and wellness goals • Keep treatable health issues from becoming chronic conditions Preventive care visits include screenings, exams, tests, and immunizations. The best part? These visits are covered in full by your health plan when you use an in-network provider. Set a calendar reminder and make it a priority to schedule your annual preventive care visit each year. 4

Cigna Wellness Resources –Tools for Your Health Cigna offers wellness resources to help you and your family members make informed choices to be your best self. Explore Cigna wellness resources and more at www.mycigna.com. • Comprehensive program provides help with life events, dedicated support, lifestyle coaching, and online tools • Healthy Rewards programs – Discounts on health programs and services • Active & Fit Direct – Finding local gym and assessing your discounted membership • iPrevail – Digital therapeutics platform to help you take control of stress • Happify – Science-based games and activities to help take control of your health • Healthy Pregnancies, Healthy Babies • Lifestyle Management Programs for Weight management, Tobacco, Stress Management Cigna Life Assistance Program If you are an active, full-time employee working at least 30 hours per week, you are eligible for the Life Assistance Program (LAP). From health and wellness support to help with life’s everyday needs and challenges, Cigna Life Assistance can help with life challenges from personal, work and family, caregiving, bereavement, legal, financial to pet care issues, just to name a few. Cigna Life Assistance Program includes: • Confidential clinical and work-life consultation by phone 24 hours a day, seven days a week, from licensed Cigna Clinicians to address many of life’s challenges and to help individuals restore peace of mind. • Up to three free in-person counseling sessions from Masters’ and PhD-level licensed behavioral health clinicians in the large Cigna network of independent, contracted providers. • 30-minute legal consultation with a licensed practicing attorney and a 25% discount off standard fixed or hourly attorney’s fees. • 30-minute financial consultation with a certified financial expert and a 25% discount on tax planning and preparation. • Online articles, resources and videos for work/life challenges including physical and mental health, family, aging, grief, working, balancing, living, thriving and more. • Monthly webcast seminars on a variety of relevant topics. To learn more about Cigna’s Life Assistance Program call 800-244-6224 or log on to myCigna.com. 5

Understanding the Benefits Lingo It’s important to be familiar with the benefits terms to better understand your options. Take a moment to review these definitions, which may be referenced throughout this guide. Balance Bill – When a health care provider bills a patient for the difference Benefit Acronyms between what the patient’s health insurance chooses to reimburse and what the provider chooses to charge. Copay – A fixed dollar amount you pay the provider at the time of service; AD&D = Accidental Death & for example, a $25 copay for an office visit or a $15 copay for a generic Dismemberment prescription. FSA = Flexible Spending Account Coinsurance – The percentage paid for a covered service, shared by you and the plan. Coinsurance can vary by plan and provider network. Review the HDHP = High Deductible Health plans carefully to understand your responsibility. You are responsible for Plan coinsurance until you reach your plan’s out-of-pocket maximum. HMO = Health Maintenance Deductible – The amount you pay each calendar year before the plan begins Organization paying benefits. Not all covered services are subject to the deductible; for example, the deductible does not apply to preventive care services. HRA = Health Reimbursement Account Emergency Room Care – Care received at a hospital emergency room for life-threatening conditions. HSA = Health Savings Account In-Network Care – Care provided by contracted doctors within the plan’s LTD = Long-Term Disability network of providers. This enables participants to receive care at a reduced rate compared to care received by out-of-network providers. OOPM = Out-of-Pocket Maximum Out-of-Network Care – Care provided by a doctor or at a facility outside of PPO = Preferred Provider the plan’s network. Your out-of-pocket costs may increase, and services Organization may be subject to balance billing. STD = Short-Term Disability Out-of-Pocket Maximum – The maximum amount you pay per year before the plan begins paying for covered expenses at 100%. This limit helps protect you from unexpected catastrophic expenses. Premium – The complete cost of your plans. You share this cost with your employer and pay your portion through regular paycheck deductions. Preventive Care – Routine health care including annual physicals and screenings to prevent disease, illness, and other health complications. In-network preventive care is covered at 100%. Urgent Care – Urgent care is not the same as emergency care. Visit urgent care for sudden illnesses or injuries that are not life-threatening. Urgent care centers are helpful when care is needed quickly to avoid developing more serious pain or problems. 6

Medical Coverage – Healthy Body, Healthy Mind Nothing is more important than your health. At Excelligence Learning Corporation, our goal is to help you be the best version of you. Choosing the right plan to meet your needs is the first step to living a healthy life. Choosing the Right Medical Plan When deciding which medical plan is the best fit for you and your family, it’s Find a Cigna Provider important to consider the total cost of coverage. This includes what you pay in premiums out of your paycheck and what you pay for services. While each medical 1. Log on to: plan covers preventive screenings in full, the medical plans vary on annual www.mycigna.com deductibles, copays, and levels of coinsurance. This means you may pay more out- of-pocket costs with one plan versus another. The ideal medical plan should cover 2. Select, “Find a most of your health plan with out-of-pocket costs that meet your budget. Doctor” Your Medical Plan Options 3. Enter your search criteria Our three medical plan options are offered through Cigna and are part of the Open Access Plus network. They are all PPO plans, each with slightly different features. Preferred Provider Organization (PPO) The three Cigna PPO plans give you the option to seek medical treatment from a contracted medical provider, at negotiated rates, or from an out-of-network provider, at an additional cost. You may pay a copay for select services, except for preventive care, which is covered in full. Other services may be subject to the annual deductible and coinsurance. Once you reach the out-of-pocket maximum, the plan will pay 100% for all eligible expenses for the remainder of the plan year. While you can visit any doctor, you’ll save the most money by using in-network providers. PPO Plan Highlights • You may receive services from providers in and out of the PPO network. • You are not required to select a PCP or medical group. • You are not required to obtain a referral to see a specialist. • Out-of-pocket costs will be higher if you use non-network providers. • Most PPO network providers will file claims on your behalf, however, if you use the non-network tier of the plan, you may have to pay the provider in full and then file a claim for reimbursement. Traditional PPO This PPO plan gives you the option to choose any provider when you need care, although as always, you will pay less out of pocket when you see a provider who is in-network. If you receive care from an out-of-network provider, you will be responsible for the difference between the covered amount and the actual charges and you may be responsible for filing claims. 7

PPO plan with a Health Reimbursement Account (HRA) This PPO plan includes a health reimbursement account (HRA) administered by Cigna, in which Excelligence contributes money for members to use for routine medical care. Unlike other health care accounts, only your employer can put money in an HRA. Excelligence contributes up to $1,000 for employee only coverage and up to $2,000 for employee plus dependent coverage annually. Contributions will be made quarterly. Each time you visit the doctor or receive health care services, you can use the tax-free funds in your HRA to pay for eligible medical expenses, such as prescription drugs and copays. The HRA covers incurred expenses by paying them from this allocation until the contribution dollars are exhausted. These expenses are applied toward the calendar year deductible and out-of-pocket maximum. PPO plans give you the option to choose any provider when you need care, although as always, you will pay less out of pocket when you see a provider who is in-network. If you receive care from an out-of-network provider, you will be responsible for the difference between the covered amount and the actual charges and you may be responsible for filing claims. High Deductible Health Plan (HDHP) with Health Savings Account (HSA) This PPO plan combines a high deductible health plan with a special, tax-qualified savings account (HSA) administered by Cigna. When you enroll in the HDHP, you are eligible to open a Health Savings Account (HSA) to help pay for eligible health care expenses (deductibles, coinsurance, and prescriptions) with pre-tax dollars. An HSA can help lower your health care costs or save for future health care expenses. You can contribute your own money tax-free. You may use your HSA funds to pay for current medical expenses or save toward future medical expenses. This plan is like a PPO in that you have the option to choose any provider when you need care. However, in exchange for a lower per-paycheck cost, you must satisfy a higher deductible that applies to almost all expenses, including those for prescription drugs. You pay for all medical services until you reach the annual deductible, except for in-network preventive care which is covered in full. After your annual deductible is met, the plan pays for a percentage of covered services known as coinsurance. When you reach the out-of-pocket maximum, the plan will pay 100% for all eligible expenses for the remainder of the calendar year. HDHP with HSA Highlights • This plan includes a deductible for individual and family coverage. The deductible applies to all services except preventive care. • You may elect to make contributions into the HSA account up to the IRS maximums through payroll contributions. • The HSA account is an advantaged account and will roll-over and accumulate year-to-year if not spent. 8

Medical Plan Comparison Plan Features PPO Plan with HRA HDHP with HSA Traditional PPO Plan Calendar Year In-Network Out-of- In-Network Out-of- In-Network Out-of- Deductible1 Network Network Network Individual/Family $2,000 / $6,000 / $2,800 / $5,600 / $1,000 / $3,000 / Calendar Year $4,000 $12,000 $5,400 $11,200 $3,000 $9,000 Out-of-Pocket Maximum2 $5,000 / $15,000 / $5,000 / $15,000 / $5,000 / $15,000 / Individual/Family $10,000 $30,000 $10,000 $30,000 $10,000 $30,000 Excelligence Annual HRA Contribution $1,000 / $2,000 N/A N/A Individual/Family Your Cost: Your Cost: Your Cost: Preventive Care Visit Covered 40% after Covered 50% after Covered 40% after Primary Care Visit in full deductible in full deductible in full deductible Telehealth Visit $25 copay 40% after 20% after 50% after $35 copay 40% after deductible deductible deductible deductible $20 copay N/A 20% after N/A $10 copay N/A deductible Specialist Visit $40 copay 40% after 20% after 50% after $35 copay 40% after Lab & X-ray Emergency Room deductible deductible deductible deductible 20% after 40% after 20% after 50% after 20% after 40% after deductible deductible deductible deductible deductible deductible 20% after deductible 80% after deductible $150 copay (waived if admitted), then 20% after deductible Urgent Care $25 copay 40% after 20% after 50% after $35 copay 40% after deductible deductible deductible Outpatient Services 20% after 40% after 20% after 50% after deductible deductible deductible deductible deductible Inpatient Services 20% after 40% after 20% after 50% after 20% after 40% after deductible deductible deductible deductible Chiropractic $25 copay 40% after 20% after 50% after deductible deductible (30 days per year) deductible deductible deductible Acupuncture $25 copay 20% after 40% after (20 days per year) 40% after 20% after 50% after deductible deductible deductible deductible deductible $35 copay 40% after deductible $35 copay 40% after deductible 1 All three medical plans have an embedded deductible which means a member can satisfy his/her individual deductible for the coverage and coinsurance to apply. 2 All three medical plans have an embedded out-of-pocket maximum which means a member can meet his/her individual out-of-pocket maximum for coverage to begin at 100%. This chart provides a brief overview of benefits and coverage. Refer to the detailed summary plan documents for questions about a specific procedure, service, or provider. In the event of a conflict, the official plan documents prevail. 9

Prescription Drug Coverage Your medical plans include prescription drug coverage through Cigna. Remember to use participating pharmacies to save the most money. You can access a list of pharmacies through your plan’s website or by calling member services. PPO Plan with HRA HDHP with HSA Traditional PPO Plan Plan Features In-Network Out-of- In-Network Out-of- In-Network Out-of- Network Network Network Prescription Drugs: Retail (up to a 30-day supply) Generic $15 $15 $15 (after deductible) Preferred Brand $35 $35 $35 Not Not (after deductible) Not Covered Non-Preferred $60 Brand $60 Covered $60 Covered 30% up to (after deductible) $250 Specialty 30% up to 30% up to $250 $250 (after deductible) Prescription Drugs: Retail Order (up to a 90-day supply) Generic $38 $38 $38 (after deductible) $105 $180 Preferred Brand $105 Not $105 Not Not Covered Covered (after deductible) Covered Non-Preferred $180 $180 Brand (after deductible) Prescription Drugs: Mail Order (up to a 90-day supply) Generic $38 $38 $38 (after deductible) $105 $180 Preferred Brand $105 Not $105 Not Not Covered Covered (after deductible) Covered Non-Preferred $180 $180 Brand (after deductible) 10

How the Health Reimbursement Account (HRA) Plan Works The HRA plan is a health reimbursement account administered by Cigna, in which Excelligence contributes money for members to use for routine medical care. Unlike other health care accounts, only your employer can put money in an HRA. Excelligence contributes up to $1,000 for employee only coverage and up to $2,000 for employee plus dependent coverage annually. Contributions will be made quarterly. Each time you visit the doctor or receive health care services, you can use the tax-free funds in your HRA to pay for eligible medical expenses, such as prescription drugs and copays. The HRA covers incurred expenses by paying them from this allocation until the contribution dollars are exhausted. These expenses are applied toward the calendar year deductible and out-of-pocket maximum. HRA Details • Once you use all the funds in your HRA, you are responsible for meeting the deductible before the plan begins to pay benefits. • If you leave Excelligence Learning Corporation, you forfeit any remaining funds in the HRA. • You have an option to contribute to a Health Care FSA to set aside your own pre-tax money in addition to the HRA funds you receive. Please note: You are required to use your Health Care FSA funds before your HRA funds become available. Questions? Refer to IRS Publication 969 for complete rules. 11

How the Health Savings Account (HSA) Works When you enroll in a High-Deductible Health Plan (HDHP), you may be eligible to open a Health Savings Account (HSA) to help pay for out-of-pocket health care expenses. An HSA makes it easy to pay for current medical, dental and vision costs and save for future health care needs now or into retirement. Also, keep in mind that the HSA is yours to keep, even if you leave the company. The Benefits of an HSA HSAs give you a triple tax advantage: 1. Set aside tax-free money* 2. Pay for eligible expenses tax-free 3. All earnings are tax-free and unused funds roll over year to year and can be invested *State taxes may still apply in CA, NJ, and AL. For detailed tax implications of an HSA, please contact your professional tax advisor. HSA Contributions You can contribute up to the annual IRS maximums (including the age 55+ catch-up contributions). Contributions cannot exceed the annual IRS maximums listed below: Coverage Type 2020 Maximum Contribution Limit Individual Coverage $3,550 Family Coverage $7,100 Age 55+ Catch-up Contribution $1,000 Keep in mind, there are a few important rules you need to follow. If you use your HSA funds for expenses the IRS considers eligible, the money remains tax-free. If you use funds for ineligible expenses, you will pay applicable taxes and an excise tax penalty (currently 20%). You will receive an HSA debit card to pay for eligible expenses. HSA Details • You must be enrolled in a qualified High Deductible Health Plan (HDHP). • You cannot be enrolled in a Health Care Flexible Spending Account. • You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account • You cannot be enrolled in Medicare or Tricare • You cannot be claimed as a dependent on someone else’s tax return Questions? Refer to IRS Publication 969 for complete rules. 12

Flexible Spending Accounts (FSAs) – Lower Your Taxes Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses. As an eligible employee, you may choose to enroll in one or both Flexible Spending Accounts. Each year, you must elect the annual amount you want to contribute to each account. Your contributions will be deducted pre-tax from your paycheck which can help reduce your taxable income. Health Care FSA Dependent Care FSA Limited Purpose FSA Annual $2,700 or IRS annual Up to $5,000 $2,700 or IRS annual Contribution Limit contribution limit contribution limit Eligibility For those enrolled in an You and your spouse For those enrolled Eligible Expenses HMO or PPO plan (if applicable) work full-time in the HDHP Availability of Funds • Health care expenses, • Dependent care expenses Only Covers Dental and such as deductible and for a child under 13 Vision Expenses copays, including prescription copays • Private day care • Eyeglasses or contact • Eyeglasses or contact providers and nannies lenses lenses • Licensed care for disabled • Dental or Vision copays • Dental or Vision copays • Orthodontia dependents • Lasik surgery • Care for an elderly parent • Orthodontia who is dependent on you • Lasik surgery Full election available upon the benefits effective date You can be reimbursed Full election available upon up to the amount available the benefits effective date in your account Payment or • Use FSA debit card Submit a claim form for • Use FSA debit card Reimbursement • Submit a claim form for out-of-pocket expenses • Submit a claim form for out-of-pocket expenses out-of-pocket expenses *For a complete list of eligible expenses, refer to IRS Publication 502: Medical and Dental Expenses, available at www.irs.gov/publications. Keep in Mind Individuals covered by a traditional Health Care FSA cannot contribute to a Health Savings Account (HSA). FSAs offer sizable tax advantages, but are subject to IRS regulations: • All expenses for the Health Care and Dependent Care Flexible Spending Accounts must be incurred during the plan year: January 1 through December 31. • At the end of the calendar year, Health Care FSA participants can roll over up to $500 of unused health care funds. Any remaining funds above this amount will be forfeited. Dependent Care FSA participants cannot roll over any unused funds. • Once you enroll in the FSA, you can only change your contribution amount if you experience a qualified status change. Each account functions separately. You cannot transfer funds from one FSA to another. 13

Dental Coverage – Something to Smile About Good dental care is an important part of your overall health. Our dental plans through Cigna help you keep your smile healthy through regular preventive dental care and offers coverage to fix problems as soon as they occur. Review your dental plan options to determine which plan is best for you and your family. PPO Dental Plan (DPPO) With the PPO dental plan (High or Low Plan) you may visit any dentist of your choice. Keep in mind, you’ll receive the highest coverage when you use an in- network provider. If you visit an out-of-network provider, you will not benefit from discounted rates and will pay more for out-of-pocket for services. HMO Dental Plan (DHMO) Find a Dentist With the HMO dental plan, you select a primary dentist who will coordinate To find an in-network provider, your dental care needs, including referrals to specialists. You typically pay a visit www.mycigna.com copay for qualified dental services. The DHMO plan offers in-network coverage only. If you visit a provider outside of the plan’s network, you will be responsible for the full cost of services. Dental PPO Dental HMO Plan High Plan Low Plan Plan Features In-Network Non- In-Network Non- In-Network Only Network Network You pay: You pay: You pay: You pay: You pay: Calendar Year Deductible $50/$150 $50/$150 $50/$150 $50/$150 None (Waived for Preventive Services) Calendar Year Benefit Maximum $1,500 $1,500 $1,500 $1,500 None Diagnostic and Preventive Services No Charge No Charge No Charge No Charge $0 - $50 Copay (e.g., x-rays, cleanings, exams) (Exception: Cone Beam CT for TMJ is $240) Basic and Restorative Services 10% 20% 20% 20% $0 -$95 Copay (e.g., fillings, extractions, root canals) Major Services 40% 50% 50% 50% $0 -$720 Copay (e.g., dentures, crowns, bridges) (Implant Procedures Range) Children (to age 19) Orthodontia 24 Month Treatment Children and adults 50% 50% N/A N/A Fee: $1,464 Adult 24 Month Treatment Fee: $2,160 Orthodontia Lifetime Maximum $1,500 $1,500 N/A N/A None For Out-of-Network services, members pay applicable coinsurance plus any amount that exceeds the usual, customary, and reasonable charge. 14

Vision Coverage – Focus on Your Eyesight Find a Vision Provider Keep your vision clear and your eyes in good health with regular eye exams. VSP vision coverage offers an extensive network of optometrists and vision care To find an in-network specialists. You’ll receive richer benefits if you utilize a VSP network provider. provider, visit www.VSP.com Benefit Description Copay Frequency Well Vision Exam • Focuses on your eyes and overall wellness $10 Every calendar year Prescription $25 See frame Glasses and lenses Frame • $140 allowance for a wide selection of frames Included in Every other • $160 allowance for featured frame brands Prescription calendar year Lenses • 20% savings on the amount over your allowance • $75 Walmart®/Costco® frame allowance Glasses Lens • Single vision, lined bifocal, and lined trifocal lenses Enhancements • Polycarbonate lenses for dependent children Included in Every calendar year Contacts (instead Prescription Every calendar year of glasses) • Standard progressive lenses Primary Eyecare • Premium progressive lenses Glasses • Custom progressive lenses. Extra Savings • Average savings of 20-25% on other lens $0 $95 - $105 enhancements $150 - $175 $140 allowance for contacts; copay does not apply Contact lens exam (fitting and evaluation) Up to $60 Every calendar year Visit your VSP doctor for medical and urgent eyecare. $20 As needed Your VSP doctor can diagnose, treat, and monitor common eye conditions and more serious conditions. Glasses and Sunglasses • Extra $20 to spend on featured frame brands. Go to vsp.com/offers for details. • 20% savings on additional glasses and sunglasses, including lens enhancements. Retinal Screening No more than a $39 copay on routine retinal screening Laser Vision Correction Average 15% off the regular price or 5% off the promotional price; discounts only available from contracted facilities YOUR COVERAGE WITH OUT-OF-NETWORK PROVIDERS Get the most out of your benefits and greater savings with a VSP network doctor. Call Member Services for out-of-network plan details. Coverage with a retail chain may be different or not apply. Once your benefit is effective, visit vsp.com for details. VSP guarantees coverage from VSP network providers only. Coverage information is subject to change. In the event of a conflict between this information and your organization’s contract with VSP, the terms of the contract will prevail. Based on applicable laws, benefits may vary by location. In the state of Washington, VSP Vision Care, Inc., is the legal name of the corporation through which VSP does business. 15

Medical, Dental and Vision Contributions This chart compares the bi-weekly and weekly contributions for our benefit plans. Your cost for coverage will vary depending on the option and level of coverage you choose. Excelligence contributes towards your medical benefits and pays 100% of the cost for basic life and AD&D insurance. You pay the full cost for any voluntary benefits you elect (dental, vision, disability, & optional life). The chart below shows what you pay per paycheck (weekly or bi-weekly). Children’s Factory payroll is weekly (52 paychecks/year), so please refer to weekly paycheck deductions if you are a Children’s Factory employee; payroll for all other divisions is bi-weekly (26 pay periods/year), so if you are not a Children’s Factory employee, please refer to bi-weekly paycheck deductions shown below. Benefit Plan Medical PPO with HRA HDHP with HSA Traditional PPO Weekly Bi-weekly Weekly Bi-weekly Weekly Bi-weekly Employee Only Employee + Spouse/DP $42.81 $85.62 $21.04 $42.09 $66.84 $133.69 Employee + Child(ren) $159.88 $319.75 $111.98 $223.95 $212.73 $425.45 Employee + Family $130.81 $261.62 $91.62 $183.23 $174.04 $348.09 $225.28 $450.56 $157.79 $315.57 $299.75 $599.50 High Option Low Option DHMO Dental Weekly Bi-weekly Weekly Bi-weekly Weekly Bi-weekly Employee Only $8.91 $17.81 $7.71 $15.42 $4.77 $9.55 Employee +1 Employee + 2 or more $21.27 $42.54 $15.73 $31.46 $9.74 $19.48 $30.87 $61.74 $24.23 $48.46 $14.99 $29.98 Vision Weekly Bi-weekly $1.64 $3.29 Employee Only $3.03 $6.06 Employee +1 $4.30 $8.60 Employee + 2 or more NOTE: Employee contributions for Medical, Dental, and Vision are deducted from your paycheck with pre-tax dollars. This means that contributions are taken from earnings before taxes – resulting in lower taxes and increased take home pay. 16

Life and AD&D – Protecting Your Loved Ones Life and Accidental Death and Dismemberment (AD&D) insurance, through Cigna, provides financial security to you and your family if you pass away or become seriously injured. Basic Life and AD&D Insurance Choosing a Beneficiary Excelligence Learning Corporation provides Basic Life and AD&D insurance You must choose a beneficiary for equal to $25,000 at no cost to you. life and AD&D insurance. Keep your beneficiaries up-to-date in Voluntary Life and AD&D Insurance Ultipro! In addition to Basic Life and AD&D, you may purchase Voluntary Life and AD&D coverage at discounted group rates. The chart below describes the amounts of coverage you can buy for yourself, your spouse, and your child(ren). You must elect Voluntary Life for yourself in order to elect coverage for your dependents. Voluntary Life and AD&D Options Benefit Features Employee Spouse Dependent Child(ren) Coverage Options Units of $10,000 Units of $5,000 Birth to 6 months: $500 Maximum* Guaranteed Issue Amount The lesser of 5 times The lesser of $50,000 or 50% 6 months to 26 years: salary or $500,000 of employee coverage amount Units of $2,500 to $10,000 $150,000 $50,000 $10,000 (cannot exceed 50% of employee life coverage) Guaranteed Issue Period Within 30 days of benefits eligibility or a qualifying life event *Evidence of Insurability (EOI) may be required. What Is EOI? Evidence of Insurability (EOI) is the process of providing health information to qualify for certain types of insurance coverage. You will be required to submit a health questionnaire (in some cases, a physical exam may be required) if you elect coverage over the guaranteed issue amount. Your questionnaire will be reviewed by Cigna, and you will be notified of their decision directly. 17

How Much Voluntary Life and AD&D Insurance Do I Need? Consider three factors when deciding the amount of voluntary life and AD&D coverage you elect: 1. How much will your dependents need to pay debts, such as a mortgage, car loan, or credit card balances? 2. How much do your dependents need to maintain their current standard of living? 3. What kind of future would you like to provide for your dependents or others who depend on you for financial support? Voluntary Life and AD&D Insurance Rates Employee Spouse/Domestic Partner Child(ren) Monthly Rate per Age Monthly Rate per Age Monthly Rate per $1,000 of Coverage $1,000 of Coverage $1,000 of Coverage $0.179 <20-34 $0.040 30-34 $0.040 (one contribution covers all dependent children) 35-39 $0.070 35-39 $0.070 Child(ren) 40-44 $0.120 40-44 $0.120 $0.03/$1,000 of coverage 45-49 $0.170 45-49 $0.170 50-54 $0.350 50-54 $0.350 55-59 $0.540 55-59 $0.540 60-64 $0.560 60-64 $0.560 65-69 $1.000 65-69 $1.000 70-74 $2.650 70* $2.650 75+ $5.550 N/A N/A Voluntary AD&D Premiums Employee Spouse/Domestic Partner $0.03/$1,000 of coverage $0.03/$1,000 of coverage *Spouse/domestic partner coverage ends at age 70 Example – Voluntary Life Insurance Rate Calculation To calculate the bi-weekly voluntary Life or AD&D cost, please use the following formula: ________ /$1,000 = _________X ____________ = ___________X 12 / 26 = _____________ Election Rate Monthly Cost Bi-Weekly Cost* The following example is based on a 35-year-old employee or spouse electing $40,000 in Life coverage: $40,000 / $1,000 = $40 X $0.07 = $2.80 X 12 = $33.60 / 26 = $1.29 *To calculate the weekly cost instead of the bi-weekly cost, replace 26 with 52 in the formula above. 18

Voluntary Disability Coverage – Prepare for the Unexpected Monthly expenses, such as mortgage payments, food costs, and utilities, continue even if you are injured or ill and unable to work. If you experience an injury or illness that prevents you from working, disability coverage provides partial income replacement to assist you financially. Short-Term Disability (STD) Excelligence Learning Corporation offers all eligible employees the opportunity to purchase Short-Term Disability coverage through Cigna. The STD plan pays you a portion of your earnings if you are unable to work due to a non-occupational illness or injury. Short-Term Disability (STD) Percent of Earnings Weekly Maximum Elimination Period Maximum Duration 60% 12 weeks $1,390 7 days STD benefits may be offset by benefits you receive from the state-mandated disability plans in California, New Jersey, New York, Rhode Island or the Commonwealth of Puerto Rico. Age Short-Term Disability Rates <20-24 Monthly Rate per $10 of Weekly Gross Benefit 25-29 $0.480 30-34 $0.490 35-39 $0.510 40-44 $0.490 45-49 $0.530 50-54 $0.590 55-59 $0.700 60-64 $0.870 65-69 $1.040 70-74 $1.160 $1.510 75+ $1.970 19

Long-Term Disability (LTD) Excelligence Learning Corporation offers all eligible employees the opportunity to purchase Long-Term Disability coverage through Cigna. The LTD plan pays you a portion of your earnings if you cannot work for an extended time due to a disabling illness or injury. Long-Term Disability (LTD) Percent of Earnings Monthly Maximum Elimination Period Maximum Duration 60% $6,000 90 days Up to Social Security Normal Retirement Age Benefits are reduced by other sources of disability income you may qualify for such as Social Security and Workers’ Compensation. Age Long-Term Disability Rates <20-24 Monthly Rate per $100 of Covered Payroll 25-29 $0.100 30-34 $0.190 35-39 $0.380 40-44 $0.600 45-49 $0.910 50-54 $1.220 55-59 $1.490 60-64 $1.680 65-69 $1.760 70-74 $1.850 $1.940 75+ $2.040 20

Additional Voluntary Benefit Plans Accident Insurance Benefits of Voluntary Insurance Accidents can happen any time. Allstate Benefits Accident insurance helps you pay for expenses related to unexpected accidents and injuries. Accident • Coverage is affordable and insurance pays in addition to your medical plan, and benefits are payable offered to you at group regardless of any other insurance plans. rates. The benefit amount is determined by the injury and medical care received • You can buy coverage for and paid in a lump sum amount. No health questions are required, but a yourself, your spouse and pre-existing condition clause may apply. children. Critical Illness Insurance • You own the policy. If you leave Excelligence or Are you protected if you experience a critical illness? Allstate Benefits retire, you can take it with Critical Illness insurance offsets your out-of-pocket expenses related to the you. diagnosis of a critical illness such as a heart attack, coma, kidney failure, or cancer. Critical Illness insurance pays in addition to your medical plan, and • Coverage is effective on benefits are payable regardless of any other insurance plans. the first day of the month in which payroll The benefit amount is determined by the type of illness and is paid in a deductions begin. lump sum amount. No health questions are required, but a pre-existing condition clause may apply. • Premiums are conveniently deducted Note: To enroll in this plan, you must be enrolled in a medical plan (any from your paycheck on a major medical plan, not necessarily an Excelligence medical plan). post-tax basis. Hospital Indemnity Insurance An unexpected hospital stay can be expensive, even with medical insurance. Allstate Benefits Hospital Indemnity insurance helps you cover your expenses related to being admitted or confined in a hospital. Benefits are paid directly to you, and the funds can be used as you see fit. No health questions are required, but a pre-existing condition clause may apply. Note: To enroll in this plan, you must be enrolled in a medical plan (any major medical plan, not necessarily an Excelligence medical plan). What is a Pre-Existing Condition Clause? If there is a health issue you have been treated for prior to the start date of your new policy, that condition may limit the coverage under the new plan. 21

Voluntary Legal Services – Support When You Need It The MetLaw Legal Plan gives you access to attorneys who can offer help or advice without you worrying about accruing high hourly costs. Your plan covers you, your spouse (or domestic partner), and your dependents. • Telephone and office consultations • Estate Planning Documents • Family and Elder Law • Defense of Civil Lawsuits • Immigration Assistance • Traffic Offenses (excludes DUI) • Legal Document Preparation and Review • Personal Property and Consumer Protection • Real Estate, Financial, Identity Theft and Juvenile Matters Find more information by calling 800-821-6400 or by visiting www.infoplans.com. Enter access code: GetLaw. Voluntary Pet Insurance – Health Care for Your Pet, Too Your pets can receive coverage to stay healthy, too. Voluntary pet insurance helps you keep your out-of- pockets costs low, as veterinary bills can add up quickly. With pet insurance from Nationwide, you can save on everything from wellness exams, cleanings and vaccinations to unexpected veterinary expenses. Call Nationwide at 877-738-7874 to speak with a pet insurance expert if you have any questions. Visit www.PetsNationwide.com, to get an instant quote and enroll at any time. 22

Discount Programs PerksAtWork.com Perks at work is a discount program offered to all full-time and part-time employees. It has a robust offering ranging from retail and memberships to travel and theme park discounts and users also earn WOWpoints which can be redeemed within the website. TicketsAtWork.com Tickets at Work offers discounts on tickets ranging from movies and shows to theme parks and attractions to hotels and car rentals. Employees should use company code EXCELLIGENCE to register. T-Mobile Enjoy up to 33% off with Autopay for you and your friends or family. When signing up, make sure to provide your email address and/or a copy of your paystub. 23

401(k) Retirement Plan – Savvy Saving for a Secure Future Preparing for retirement is a top priority of smart financial planning. Excelligence sponsors a 401(k) Plan through Fidelity to help you start saving now. Fidelity offers a variety of investment options to grow your earnings, and Excelligence generously matches employee 401(k) contributions to boost your savings. Eligibility You are eligible to participate in the 401(k) plan on your first day of Keep Track of Your employment, if you are 18 years of age or older. The plan entry date is the first 401(k) of the month. You may enroll in the 401(k) plan, designate beneficiaries, and allocate your asset distribution at any time. You do not need to wait for annual Call Fidelity: enrollment to make changes. Personal contributions are pre-tax and are added 800-835-5097 to your account conveniently through payroll deductions. Online: Company 401(k) Contributions www.Netbenefits.com or ALL NEW and Effective January 1, 2020!! www.401k.com Excelligence has made some BIG ENHANCEMENTS to the 401(k) Plan match starting January 1, 2020! If you participate in the 401(k) Plan, Excelligence will match: • 100% of the first 3% of eligible earnings that you contribute and • 50% of the next 2% of eligible earnings • So essentially, if you contribute 5% of your eligible earnings, Excelligence will contribute 4%. 401(k) at a Glance • Excelligence will match 100% of the first 3% of eligible earnings that you contribute and 50% of the next 2%. • You can contribute up to 60% of your eligible earnings, up to the IRS annual contribution limit ($19,000 in 2019). • If you are age 50 or older, you can make additional catch-up contributions up to the IRS annual contribution limit ($6,000 in 2019). 24

Vesting Effective January 1, 2020 You are immediately vested in your contributions, the company’s matching contributions, and your investment earnings. This means that 100% of the funds in your account are yours when you leave the company, regardless of your years of service. Save for Retirement Like a Pro • Start saving as soon as possible to grow your retirement account. • Begin with small contributions, if necessary, and increase contributions over time. • Make setting aside money for retirement a habit. • Understand investment returns may fluctuate. • Let it sit. Avoid penalties by leaving funds in your 401(k) until retirement. • If you change jobs, you can roll over your retirement account. 25

Questions? Contact the Benefits Experts: Coverage Contact Policy Number Phone Website Medical Cigna 3343031 800-244-6224 www.myCigna.com Health Savings Account (HSA) Cigna 3343031 Dental Cigna 3343031 800-244-6224 www.myCigna.com Amwell TeleHealth N/A 800-244-6224 www.myCigna.com or Vision MDLIVE N/A 855-667-9722 AmwellforCigna.com Flexible Spending Account N/A or (FSA) VSP 3343031 888-726-3171 Life and AD&D 800-877-7195 MDLIVE forCigna.com Voluntary Disability PayPro www.VSP.com Cigna 800-427-4549 www.PAGroup.US Cigna 800-244-6224 Email: [email protected] www.myCigna.com 3343031 800-244-6224 www.myCigna.com Voluntary Legal Services MetLaw N/A 800-821-6400 www.infoplans.com Voluntary Pet Insurance Nationwide N/A 877-738-7874 www.PetsNationwide.com 401(k) Retirement Plan Fidelity www.Netbenefits.com N/A 800-835-5097 www.401k.com Voluntary Worksite Coverage Allstate N/A 800-521-3535 www.allstatebenefits.com (Accident, Critical Illness, and Hospital Indemnity) 26

Benefits Helpline Willis Towers Watson Benefits Helpline is at your service! The Helpline is open on Business Days, 9 am – 5 pm PST. Please use the Helpline for questions such as: • Don’t understand the Explanation of Benefits (EOB)? • Is the amount paid by your insurance different than what you expected? • Was your claim denied and you don’t understand why? • Need help finding an in-network provider? • Want to know if a service is covered? Call: 1-833-744-1218 or Email: [email protected] This guide provides an overview of your benefits program. It is not intended to be a complete description of the benefits or an official summary plan description for these programs. If there is a discrepancy between this guide and the official plan documents, the plan documents will govern. Excelligence reserves the right to modify or terminate any of the described benefits at any time and for any reason without notice. The descriptions of these benefits are not guarantees of current or future employment or benefits. For information about the specific plans available to you, please contact Human Resources. 27

Women’s Health & Cancer Rights Act (WHCRA) If you have had or are going to have a mastectomy, you may be entitled to certain benefits under the Women’s Health and Cancer Rights Act of 1998 (WHCRA). For individuals receiving mastectomy related benefits, coverage will be provided in a manner determined in consultation with the attending physician and the patient, for: • All stages of reconstruction of the breast on which the mastectomy was performed; • Surgery and reconstruction of the breast to produce a symmetrical appearance: • Prostheses; and • Treatment of physical complications of the mastectomy, including lymphedema. These benefits will be provided subject to the same deductibles and coinsurance applicable to other medical and surgical benefits provided under the medical plan. Therefore, the following deductibles and coinsurance apply (individual): • PPO Plan with HRA: 20% after $2,000 deductible in-network or 40% after $6,000 out-of-network • HDHP with HSA: 20% after $2,800 deductible in-network or 50% after $5,600 deductible out-of- network • Traditional PPO: 20% after$1,000 deductible in-network and 40% after $3,000 deductible out-of- network. If you would like more information on WHCRA benefits, call your plan administrator at 1-831-264-9400. Newborns' and Mothers' Health Protection Act Group health plans and health insurance issuers generally may not, under federal law, restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours following a cesarean section. However, federal law generally does not prohibit the mother's or newborn's attending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours as applicable). In any case, plans and issuers may not, under federal law, require that a provider obtain authorization from the plan or the issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours). Premium Assistance under Medicaid and the Children’s Health Insurance Program (CHIP) If you or your children are eligible for Medicaid or CHIP and you’re eligible for health coverage from your employer, your state may have a premium assistance program that can help pay for coverage, using funds from their Medicaid or CHIP programs. If you or your children aren’t eligible for Medicaid or CHIP, you won’t 28

be eligible for these premium assistance programs, but you may be able to buy individual insurance coverage through the Health Insurance Marketplace. For more information, visit www.healthcare.gov. If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, contact your State Medicaid or CHIP office to find out if premium assistance is available. If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, contact your State Medicaid or CHIP office or dial 1-877-KIDS NOW or www.insurekidsnow.gov to find out how to apply. If you qualify, ask your state if it has a program that might help you pay the premiums for an employer-sponsored plan. If you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your employer plan, your employer must allow you to enroll in your employer plan if you aren’t already enrolled. This is called a “special enrollment” opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have questions about enrolling in your employer plan, contact the Department of Labor at www.askebsa.dol.gov or call 1-866-444-EBSA (3272). If you live in one of the following states, you may be eligible for assistance paying your employer health plan premiums. The following list of states is current as of July 31, 2019. Contact your State for more information on eligibility. ALABAMA – Medicaid FLORIDA – Medicaid Website: http://myalhipp.com/ Website: http://flmedicaidtplrecovery.com/hipp/ Phone: 1-855-692-5447 Phone: 1-877-357-3268 ALASKA – Medicaid GEORGIA – Medicaid The AK Health Insurance Premium Payment Program Website: https://medicaid.georgia.gov/ Website: http://myakhipp.com/ health-insurance-premium-payment-program-hipp Phone: 1-866-251-4861 Phone: 678-564-1162 Email: [email protected] Medicaid Eligibility: http://dhss.alaska.gov/dpa/Pages/medicaid/default.aspx ARKANSAS – Medicaid INDIANA – Medicaid Website: http://myarhipp.com/ Healthy Indiana Plan for low-income adults 19-64 Phone: 1-855-MyARHIPP (855-692-7447) Website: http://www.in.gov/fssa/hip/ Phone: 1-877-438-4479 All other Medicaid Website: http://www.indianamedicaid.com Phone 1-800-403-0864 Colorado - Health First Colorado IOWA – Medicaid (Colorado's Medicaid Program) & Child Health Plan Plis (CHP+) Website: http://dhs.iowa.gov/hawk-i Health First Colorado Website: Phone: 1-800-257-8563 https://www.healthfirstcolorado.com/ Health First Colorado Member Contact Center: 1-800-221-3943/ State Relay 711 CHP+: https://www.colorado.gov/pacific/hcpf/child-health-plan-plus CHP+ Customer Service: 1-800-359-1991/ State Relay 711 29

KANSAS – Medicaid NEW HAMPSHIRE – Medicaid Website: http://www.kdheks.gov/hcf/ Website: Phone: 1-785-296-3512 https://www.dhhs.nh.gov./oii/hipp.htm Phone: 603-271-5218 Toll-Free number for the HIPP program: 1-800-852-3345, ext 5218 KENTUCKY – Medicaid NEW JERSEY – Medicaid and CHIP Website: http://chfs.ky.gov Medicaid Website: Phone: 1-800-635-2570 http://www.state.nj.us/humanservices/dmahs/clients/medicaid/ Medicaid Phone: 609-631-2392 CHIP Website: http://www.njfamilycare.org/index.html CHIP Phone: 1-800-701-0710 LOUISIANA – Medicaid NEW YORK – Medicaid Website: http://dhh.louisiana.gov/index.cfm/subhome/1/n/331 Website: https://www.health.ny.gov/health_care/medicaid/ Phone: 1-888-695-2447 Phone: 1-800-541-2831 MAINE – Medicaid NORTH CAROLINA – Medicaid Website: http://www.maine.gov/dhhs/ofi/public-assistance/index.html Website: Phone: 1-800-442-6003 https://dma.ncdhhs.gov/ TTY: Maine relay 711 Phone: 919-855-4100 MASSACHUSETTS – Medicaid and CHIP NORTH DAKOTA – Medicaid Website: http://www.mass.gov/eohhs/gov/departments/masshealth/ Website: http://www.nd.gov/dhs/services/medicalserv/medicaid/ Phone: 1-800-862-4840 Phone: 1-844-854-4825 MINNESOTA – Medicaid OKLAHOMA – Medicaid and CHIP Website: http://mn.gov/dhs/people-we-serve/seniors/health-care/ Website: health-care-programs/programs-and-services/medical-assistance.jsp http://www.insureoklahoma.org Phone: 1-800-657-3739 Phone: 1-888-365-3742 MISSOURI – Medicaid OREGON – Medicaid and CHIP Website: http://www.dss.mo.gov/mhd/participants/pages/hipp.htm Website: Phone: 573-751-2005 http://healthcare.oregon.gov/Pages/index.aspx http://www.oregonhealthcare.gov/index-es.html Phone: 1-800-699-9075 MONTANA – Medicaid PENNSYLVANIA – Medicaid Website: http://dphhs.mt.gov/MontanaHealthcarePrograms/HIPP Website: Phone: 1-800-694-3084 http://www.dhs.pa.gov/provider/medicalassistance / healthinsurancepremiumpaymenthippprogram/index.htm Phone: 1-800-692-7462 30

NEBRASKA – Medicaid RHODE ISLAND – Medicaid and CHIP Website: http://www.ACCESSNebraska.ne.gov Website: http://www.eohhs.ri.gov/ Phone: 855-632-7633 Phone: 855-697-4347, or Lincoln: 402-473-7000 Omaha: 402-595-1178 401-462-0311 (Direct Rlte Share Line) NEVADA – Medicaid SOUTH CAROLINA – Medicaid Medicaid Website: http://dhcfp.nv.gov Website: https://www.scdhhs.gov Medicaid Phone: 1-800-992-0900 Phone: 1-888-549-0820 SOUTH DAKOTA - Medicaid WASHINGTON – Medicaid Website: http://dss.sd.gov Website: http://www.hca.wa.gov Phone: 1-888-828-0059 Phone: 1-800-562-3022 ext. 15473 TEXAS – Medicaid WEST VIRGINIA – Medicaid Website: http://gethipptexas.com/ Website: http://mywvhipp.com Phone: 1-800-440-0493 Toll free phone: 1-855-MyWVHIPP (1-855-699-8447) UTAH – Medicaid and CHIP WISCONSIN – Medicaid and CHIP Medicaid Website: https://medicaid.utah.gov/ Website: CHIP Website: http://health.utah.gov/chip https://www.dhs.wisconsin.gov/publications/p1/p10095.pdf Phone: 1-877-543-7669 Phone: 1-800-362-3002 VERMONT– Medicaid WYOMING – Medicaid Website: http://www.greenmountaincare.org/ Website: https://wyequalitycare.acs-inc.com/ Phone: 1-800-250-8427 Phone: 307-777-7531 VIRGINIA – Medicaid and CHIP Medicaid Website: http://www.coverva.org/programs_premium_assistance.cfm Medicaid Phone: 1-800-432-5924 CHIP Website: http://www.coverva.org/programs_premium_assistance.cfm CHIP Phone: 1-855-242-8282 To see if any other states have added a premium assistance program since July 31, 2019, or for more information on special enrollment rights, contact either: U.S. Department of Labor U.S. Department of Health and Human Services Employee Benefits Security Administration Centers for Medicare & Medicaid Services www.dol.gov/agencies/ebsa www.cms.hhs.gov 1-866-444-EBSA (3272) 1-877-267-2323, Menu Option 4, Ext. 61565 Paperwork Reduction Act Statement According to the Paperwork Reduction Act of 1995 (Pub. L. 104-13) (PRA), no persons are required to respond to a collection of information unless such collection displays a valid Office of Management and 31

Budget (OMB) control number. The Department notes that a Federal agency cannot conduct or sponsor a collection of information unless it is approved by OMB under the PRA, and displays a currently valid OMB control number, and the public is not required to respond to a collection of information unless it displays a currently valid OMB control number. See 44 U.S.C. 3507. Also, notwithstanding any other provisions of law, no person shall be subject to penalty for failing to comply with a collection of information if the collection of information does not display a currently valid OMB control number. See 44 U.S.C. 3512. The public reporting burden for this collection of information is estimated to average approximately seven minutes per respondent. Interested parties are encouraged to send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the U.S. Department of Labor, Employee Benefits Security Administration, Office of Policy and Research, Attention: PRA Clearance Officer, 200 Constitution Avenue, N.W., Room N-5718, Washington, DC 20210 or email [email protected] and reference the OMB Control Number 1210-0137. OMB Control Number 1210-0137 (expires 12/31/2019) Medicare Part D – Creditable Coverage Important Notice from Excelligence Learning Corporation about Your Prescription Drug Coverage and Medicare Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with Excelligence Learning Corporation and about your options under Medicare’s prescription drug coverage. This information can help you decide whether or not you want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice. There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage: 1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium. 2. Excelligence Learning Corporation has determined that the prescription drug coverage offered by the Excelligence Health and Welfare Plan is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage. Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan. 32

When Can You Join A Medicare Drug Plan? You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15th - December 7th. However, if you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug plan. What Happens to Your Current Coverage If You Decide to Join A Medicare Drug Plan? If you decide to join a Medicare drug plan, your current Excelligence Learning Corporation coverage will not be affected. You can keep this coverage if you elect Part D and this plan will coordinate with Part D coverage. If you do decide to join a Medicare drug plan and drop your current Excelligence Learning Corporation coverage, be aware that you and your dependents may not be able to get this coverage back. When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan? You should also know that if you drop or lose your current coverage with Excelligence Learning Corporation and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may pay a higher premium (a penalty) to join a Medicare drug plan later. If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium. You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following October to join. For More Information About This Notice Or Your Current Prescription Drug Coverage… For further information, call the Human Resources Department at 1-831-264-9400. NOTE: You’ll get this notice each year. You will also get it before the next period you can join a Medicare drug plan, and if this coverage through Excelligence Learning Corporation changes. You also may request a copy of this notice at any time. For More Information About Your Options Under Medicare Prescription Drug Coverage… More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans. For more information about Medicare prescription drug coverage: 33

• Visit www.medicare.gov • Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the “Medicare & You” handbook for their telephone number) for personalized help • Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048. If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra help, visit Social Security on the web at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778). Remember: Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are required to pay a higher premium (a penalty). Date: 01/01/2020 Name of Entity/Sender: Excelligence Learning Corporation Contact—Position/Office: The Human Resources Department Address: 20 Ryan Ranch Road, Monterey, CA 93940 Phone Number: 1-831-264-9400 MODEL INDIVIDUAL CREDITABLE COVERAGE DISCLOSURE NOTICE LANGUAGE OMB 0938-0990 FOR USE ON OR AFTER APRIL 1, 2011 34

HIPAA Notice of Special Enrollment If you are declining enrollment for yourself or your dependents (including your spouse) because of other health insurance or group health plan coverage, you may be able to enroll yourself and your dependents in this plan if you or your dependents lose eligibility for that other coverage (or if the employer stops contributing toward your or your dependents’ other coverage). However, you must request enrollment within 30 days after your or your dependents’ other coverage ends (or after the employer stops contributing toward the other coverage). In addition, if you have a new dependent as a result of marriage, birth, adoption, or placement for adoption, you may be able to enroll yourself and your dependents. However, you must request enrollment within 30 days after the marriage, birth, adoption, or placement for adoption. Special enrollment rights also may exist in the following circumstances: • If you or your dependents experience a loss of eligibility for Medicaid or a state Children’s Health Insurance Program (CHIP) coverage and you request enrollment within 60 days or any longer period that applies under the plan after that coverage ends; or • If you or your dependents become eligible for a state premium assistance subsidy through Medicaid or a state CHIP with respect to coverage under this plan and you request enrollment within 60 days or any longer period that applies under the plan after the determination of eligibility for such assistance. Note: The 60 day period for requesting enrollment applies only in these last two listed circumstances relating to Medicaid and state CHIP. As described above, a 30 day applies to most special enrollments. To request special enrollment or obtain more information, contact: Name: Human Resources Department Phone number: 1-831-264-9400 Notice of Privacy Practices Notice of Excelligence Health and Welfare Plan Health Information Privacy Practices This notice describes how medical information about you may be used and disclosed and how you can get access to this information. Please review it carefully. The effective date of this Notice of Excelligence Health and Welfare Plan Health Information Privacy Practices (the Notice) is 01/01/2020 Excelligence Health and Welfare Plan (the Plan) provides health benefits to eligible employees of Excelligence Learning Corporation (the “Company”) and their eligible dependents as described in the summary plan description(s) for the Plan. The Plan creates, receives, uses, maintains and discloses health information about participating employees and dependents in the course of providing these health benefits. 35

For ease of reference, in the remainder of this Notice, the words “you,” “your,” and “yours” refers to any individual with respect to whom the Plan receives, creates or maintains Protected Health Information, including employees, retirees (if applicable) and COBRA qualified beneficiaries, if any, and their respective dependents. The Plan is required by law to take reasonable steps to protect your Protected Health Information from inappropriate use or disclosure. Your “Protected Health Information” (PHI) is information about your past, present, or future physical or mental health condition, the provision of health care to you, or the past, present, or future payment for health care provided to you, but only if the information identifies you or there is a reasonable basis to believe that the information could be used to identify you. Protected health information includes information of a person living or deceased (for a period of fifty years after the death.) The Plan is required by law to provide notice to you of the Plan’s duties and privacy practices with respect to your PHI, and is doing so through this Notice. This Notice describes the different ways in which the Plan uses and discloses PHI. It is not feasible in this Notice to describe in detail all of the specific uses and disclosures the Plan may make of PHI, so this Notice describes all of the categories of uses and disclosures of PHI that the Plan may make and, for most of those categories, gives examples of those uses and disclosures. The Plan is required to abide by the terms of this Notice until it is replaced. The Plan may change its privacy practices at any time and, if any such change requires a change to the terms of this Notice, the Plan will revise and re-distribute this Notice according to the Plan’s distribution process. Accordingly, the Plan can change the terms of this Notice at any time. The Plan has the right to make any such change effective for all of your PHI that the Plan creates, receives or maintains, even if the Plan received or created that PHI before the effective date of the change. The Plan is distributing this Notice, and will distribute any revisions, only to participating employees and retirees (if applicable) and COBRA qualified beneficiaries, if any. If you have coverage under the Plan as a dependent of an employee, retiree (if applicable) or COBRA qualified beneficiary, you can get a copy of the Notice by requesting it from the contact named at the end of this Notice. Please note that this Notice applies only to your PHI that the Plan maintains. It does not affect your doctor’s or other health care provider’s privacy practices with respect to your PHI that they maintain. Receipt of Your PHI by the Company and Business Associates The Plan may disclose your PHI to, and allow use and disclosure of your PHI by, the Company and Business Associates, and any of their subcontractors without obtaining your authorization. Plan Sponsor: The Company is the Plan Sponsor and Plan Administrator. The Plan may disclose to the Company, in summary form, claims history and other information so that the Company may solicit premium bids for health benefits, or to modify, amend or terminate the Plan. This summary information omits your name and Social Security Number and certain other identifying information. The Plan may also disclose information about your participation and enrollment status in the Plan to the Company and receive similar information from the Company. If the Company agrees in writing that it will protect the information against 36

inappropriate use or disclosure, the Plan also may disclose to the Company a limited data set that includes your PHI, but omits certain direct identifiers, as described later in this Notice. The Plan may disclose your PHI to the Company for plan administration functions performed by the Company on behalf of the Plan, if the Company certifies to the Plan that it will protect your PHI against inappropriate use and disclosure. Example: The Company reviews and decides appeals of claim denials under the Plan. The Claims Administrator provides PHI regarding an appealed claim to the Company for that review, and the Company uses PHI to make the decision on appeal. Business Associates: The Plan and the Company hire third parties, such as a third party administrator (the “Claims Administrator”), to help the Plan provide health benefits. These third parties are known as the Plan’s “Business Associates.” The Plan may disclose your PHI to Business Associates, like the Claims Administrator, who are hired by the Plan or the Company to assist or carry out the terms of the Plan. In addition, these Business Associates may receive PHI from third parties or create PHI about you in the course of carrying out the terms of the Plan. The Plan and the Company must require all Business Associates to agree in writing that they will protect your PHI against inappropriate use or disclosure, and will require their subcontractors and agents to do so, too. For purposes of this Notice, all actions of the Company and the Business Associates that are taken on behalf of the Plan are considered actions of the Plan. For example, health information maintained in the files of the Claims Administrator is considered maintained by the Plan. So, when this Notice refers to the Plan taking various actions with respect to health information, those actions may be taken by the Company or a Business Associate on behalf of the Plan. How the Plan May Use or Disclose Your PHI The Plan may use and disclose your PHI for the following purposes without obtaining your authorization. And, with only limited exceptions, we will send all mail to you, the employee. This includes mail relating to your spouse and other family members who are covered under the Plan. If a person covered under the Plan has requested Restrictions or Confidential Communications, and if the Plan has agreed to the request, the Plan will send mail as provided by the request for Restrictions or Confidential Communications. Your Health Care Treatment: The Plan may disclose your PHI for treatment (as defined in applicable federal rules) activities of a health care provider. Example: If your doctor requested information from the Plan about previous claims under the Plan to assist in treating you, the Plan could disclose your PHI for that purpose. Example: The Plan might disclose information about your prior prescriptions to a pharmacist for the pharmacist’s reference in determining whether a new prescription may be harmful to you. Making or Obtaining Payment for Health Care or Coverage: The Plan may use or disclose your PHI for payment (as defined in applicable federal rules) activities, including making payment to or collecting payment from third parties, such as health care providers and other health plans. 37

Example: The Plan will receive bills from physicians for medical care provided to you that will contain your PHI. The Plan will use this PHI, and create PHI about you, in the course of determining whether to pay, and paying, benefits with respect to such a bill. Example: The Plan may consider and discuss your medical history with a health care provider to determine whether a particular treatment for which Plan benefits are or will be claimed is medically necessary as defined in the Plan. The Plan’s use or disclosure of your PHI for payment purposes may include uses and disclosures for the following purposes, among others. • Obtaining payments required for coverage under the Plan • Determining or fulfilling its responsibility to provide coverage and/or benefits under the Plan, including eligibility determinations and claims adjudication • Obtaining or providing reimbursement for the provision of health care (including coordination of benefits, subrogation, and determination of cost sharing amounts) • Claims management, collection activities, obtaining payment under a stop-loss insurance policy, and related health care data processing • Reviewing health care services to determine medical necessity, coverage under the Plan, appropriateness of care, or justification of charges • Utilization review activities, including precertification and preauthorization of services, concurrent and The Plan also may disclose your PHI for purposes of assisting other health plans (including other health plans sponsored by the Company), health care providers, and health care clearinghouses with their payment activities, including activities like those listed above with respect to the Plan. Health Care Operations: The Plan may use and disclose your PHI for health care operations (as defined in applicable federal rules) which includes a variety of facilitating activities. Example: If claims you submit to the Plan indicate that you have diabetes or another chronic condition, the Plan may use and disclose your PHI to refer you to a disease management program. Example: If claims you submit to the Plan indicate that the stop-loss coverage that the Company has purchased in connection with the Plan may be triggered, the Plan may use or disclose your PHI to inform the stop-loss carrier of the potential claim and to make any claim that ultimately applies. The Plan’s use and disclosure of your PHI for health care operations purposes may include uses and disclosures for the following purposes. • Quality assessment and improvement activities • Disease management, case management and care coordination • Activities designed to improve health or reduce health care costs 38

• Contacting health care providers and patients with information about treatment alternatives • Accreditation, certification, licensing or credentialing activities • Fraud and abuse detection and compliance programs The Plan also may use or disclose your PHI for purposes of assisting other health plans (including other plans sponsored by the Company), health care providers and health care clearinghouses with their health care operations activities that are like those listed above, but only to the extent that both the Plan and the recipient of the disclosed information have a relationship with you and the PHI pertains to that relationship. • The Plan’s use and disclosure of your PHI for health care operations purposes may include uses and disclosures for the following additional purposes, among others. • Underwriting (with the exception of PHI that is genetic information) premium rating and performing related functions to create, renew or replace insurance related to the Plan • Planning and development, such as cost-management analyses • Conducting or arranging for medical review, legal services, and auditing functions • Business management and general administrative activities, including implementation of, and compliance with, applicable laws, and creating de-identified health information or a limited data set The Plan also may use or disclose your PHI for purposes of assisting other health plans for which the Company is the plan sponsor, and any insurers and/or HMOs with respect to those plans, with their health care operations activities similar to both categories listed above. Limited Data Set: The Plan may disclose a limited data set to a recipient who agrees in writing that the recipient will protect the limited data set against inappropriate use or disclosure. A limited data set is health information about you and/or others that omits your name and Social Security Number and certain other identifying information. Legally Required: The Plan will use or disclose your PHI to the extent required to do so by applicable law. This may include disclosing your PHI in compliance with a court order, or a subpoena or summons. In addition, the Plan must allow the U.S. Department of Health and Human Services to audit Plan records. Health or Safety: When consistent with applicable law and standards of ethical conduct, the Plan may disclose your PHI if the Plan, in good faith, believes that such disclosure is necessary to prevent or lessen a serious and imminent threat to your health or the health and safety of others. The Plan can share health information about you for certain situations such as: • Preventing disease • Helping with product recalls • Reporting adverse reactions to medications • Reporting suspected abuse, neglect, or domestic violence 39

Law Enforcement: The Plan may disclose your PHI to a law enforcement official if the Plan believes in good faith that your PHI constitutes evidence of criminal conduct that occurred on the premises of the Plan. The Plan also may disclose your PHI for limited law enforcement purposes. Lawsuits and Disputes: In addition to disclosures required by law in response to court orders, the Plan may disclose your PHI in response to a subpoena, discovery request or other lawful process, but only if certain efforts have been made to notify you of the subpoena, discovery request or other lawful process or to obtain an order protecting the information to be disclosed. Workers’ Compensation: The Plan may use and disclose your PHI when authorized by and to the extent necessary to comply with laws related to workers’ compensation or other similar programs. Emergency Situation: The Plan may disclose your PHI to a family member, friend, or other person, for the purpose of helping you with your health care or payment for your health care, if you are in an emergency medical situation and you cannot give your agreement to the Plan to do this. Personal Representatives: The Plan will disclose your PHI to your personal representatives appointed by you or designated by applicable law (a parent acting for a minor child, or a guardian appointed for an incapacitated adult, for example) to the same extent that the Plan would disclose that information to you. The Plan may choose not to disclose information to a personal representative if it has reasonable belief that: 1) you have been or may be a victim of domestic abuse by your personal representative; or 2) recognizing such person as your personal representative may result in harm to you; or 3) it is not in your best interest to treat such person as your personal representative. Public Health: To the extent that other applicable law does not prohibit such disclosures, the Plan may disclose your PHI for purposes of certain public health activities, including, for example, reporting information related to an FDA-regulated product’s quality, safety or effectiveness to a person subject to FDA jurisdiction. Health Oversight Activities: The Plan may disclose your PHI to a public health oversight agency for authorized activities, including audits, civil, administrative or criminal investigations; inspections; licensure or disciplinary actions. Coroner, Medical Examiner, or Funeral Director: The Plan may disclose your PHI to a coroner or medical examiner for the purposes of identifying a deceased person, determining a cause of death or other duties as authorized by law. Also, the Plan may disclose your PHI to a funeral director, consistent with applicable law, as necessary to carry out the funeral director’s duties. Organ Donation: The Plan may use or disclose your PHI to assist entities engaged in the procurement, banking, or transplantation of cadaver organs, eyes, or tissue. Specified Government Functions: In specified circumstances, federal regulations may require the Plan to use or disclose your PHI to facilitate specified government functions related to the military and veterans, national security and intelligence activities, protective services for the president and others, and correctional institutions and inmates. 40

Research: The Plan may disclose your PHI to researchers when your individual identifiers have been removed or when an institutional review board or privacy board has reviewed the research proposal and established a process to ensure the privacy of the requested information and approves the research. Disclosures to You: When you make a request for your PHI, the Plan is required to disclose to you your medical records, billing records, and any other records used to make decisions regarding your health care benefits. The Plan must also, when requested by you, provide you with an accounting of disclosures of your PHI if such disclosures were for any reason other than Treatment, Payment, or Health Care Operations (and if you did not authorize the disclosure). Authorization to Use or Disclose Your PHI Except as stated above, the Plan will not use or disclose your PHI unless it first receives written authorization from you. If you authorize the Plan to use or disclose your PHI, you may revoke that authorization in writing at any time, by sending notice of your revocation to the contact person named at the end of this Notice. To the extent that the Plan has taken action in reliance on your authorization (entered into an agreement to provide your PHI to a third party, for example) you cannot revoke your authorization. Furthermore, we will not: (1) supply confidential information to another company for its marketing purposes (unless it is for certain limited Health Care Operations); (2) sell your confidential information (unless under strict legal restrictions) (to sell means to receive direct or indirect remuneration); (3) provide your confidential information to a potential employer with whom you are seeking employment without your signed authorization; or (4) use or disclose psychotherapy notes unless required by law. Additionally, if a state or other law requires disclosure of immunization records to a school, written authorization is no longer required. However, a covered entity still must obtain and document an agreement which may be oral and over the phone. The Plan May Contact You The Plan may contact you for various reasons, usually in connection with claims and payments and usually by mail. You should note that the Plan may contact you about treatment alternatives or other health-related benefits and services that may be of interest to you. Your Rights With Respect to Your PHI Confidential Communication by Alternative Means: If you feel that disclosure of your PHI could endanger you, the Plan will accommodate a reasonable request to communicate with you by alternative means or at alternative locations. For example, you might request the Plan to communicate with you only at a particular address. If you wish to request confidential communications, you must make your request in writing to the contact person named at the end of this Notice. You do not need to state the specific reason that you feel disclosure of your PHI might endanger you in making the request, but you do need to state whether that is the case. Your request also must specify how or where you wish to be contacted. The Plan will notify you if it agrees to your request for confidential communication. You should not assume that the Plan has accepted your request until the Plan confirms its agreement to that request in writing. 41

Request Restriction on Certain Uses and Disclosures: You may request the Plan to restrict the uses and disclosures it makes of your PHI. This request will restrict or limit the PHI that is disclosed for Treatment, Payment, or Health Care Operations, and this restriction may limit the information that the Plan discloses to someone who is involved in your care or the payment for your care. The Plan is not required to agree to a requested restriction, but if it does agree to your requested restriction, the Plan is bound by that agreement, unless the information is needed in an emergency situation. There are some restrictions, however, that are not permitted even with the Plan’s agreement. To request a restriction, please submit your written request to the contact person identified at the end of this Notice. In the request please specify: (1) what information you want to restrict; (2) whether you want to limit the Plan’s use of that information, its disclosure of that information, or both; and (3) to whom you want the limits to apply (a particular physician, for example). The Plan will notify you if it agrees to a requested restriction on how your PHI is used or disclosed. You should not assume that the Plan has accepted a requested restriction until the Plan confirms its agreement to that restriction in writing. You may request restrictions on our use and disclosure of your confidential information for the treatment, payment and health care operations purposes explained in this Notice. Notwithstanding this policy, the plan will comply with any restriction request if (1) except as otherwise required by law, the disclosure is to the health plan for purposes of carrying out payment or health care operations (and it is not for purposes of carrying out treatment); and (2) the PHI pertains solely to a health care item or service for which the health care provider has been paid out-of-pocket in full. Right to Be Notified of a Breach: You have the right to be notified in the event that the plan (or a Business Associate) discovers a breach of unsecured protected health information. Electronic Health Records: You may also request and receive an accounting of disclosures of electronic health records made for treatment, payment, or health care operations during the prior three years for disclosures made on or after (1) January 1, 2014 for electronic health records acquired before January 1, 2009; or (2) January 1, 2011 for electronic health records acquired on or after January 1, 2009. The first list you request within a 12-month period will be free. You may be charged for providing any additional lists within a 12-month period. Paper Copy of This Notice: You have a right to request and receive a paper copy of this Notice at any time, even if you received this Notice previously, or have agreed to receive this Notice electronically. To obtain a paper copy please call or write the contact person named at the end of this Notice. Right to Access Your PHI: You have a right to access your PHI in the Plan’s enrollment, payment, claims adjudication and case management records, or in other records used by the Plan to make decisions about you, in order to inspect it and obtain a copy of it. Your request for access to this PHI should be made in writing to the contact person named at the end of this Notice. The Plan may deny your request for access, for example, if you request information compiled in anticipation of a legal proceeding. If access is denied, you will be provided with a written notice of the denial, a description of how you may exercise any review rights you might have, and a description of how you may complain to Plan or the Secretary of Health and Human Services. If you request a copy of your PHI, the Plan may charge a reasonable fee for copying and, if applicable, postage associated with your request. 42

Right to Amend: You have the right to request amendments to your PHI in the Plan’s records if you believe that it is incomplete or inaccurate. A request for amendment of PHI in the Plan’s records should be made in writing to the contact person named at the end of this Notice. The Plan may deny the request if it does not include a reason to support the amendment. The request also may be denied if, for example, your PHI in the Plan’s records was not created by the Plan, if the PHI you are requesting to amend is not part of the Plan's records, or if the Plan determines the records containing your health information are accurate and complete. If the Plan denies your request for an amendment to your PHI, it will notify you of its decision in writing, providing the basis for the denial, information about how you can include information on your requested amendment in the Plan’s records, and a description of how you may complain to Plan or the Secretary of Health and Human Services. Accounting: You have the right to receive an accounting of certain disclosures made of your health information. Most of the disclosures that the Plan makes of your PHI are not subject to this accounting requirement because routine disclosures (those related to payment of your claims, for example) generally are excluded from this requirement. Also, disclosures that you authorize, or that occurred more than six years before the date of your request, are not subject to this requirement. To request an accounting of disclosures of your PHI, you must submit your request in writing to the contact person named at the end of this Notice. Your request must state a time period which may not include dates more than six years before the date of your request. Your request should indicate in what form you want the accounting to be provided (for example on paper or electronically). The first list you request within a 12-month period will be free. If you request more than one accounting within a 12-month period, the Plan will charge a reasonable, cost- based fee for each subsequent accounting. Personal Representatives: You may exercise your rights through a personal representative. Your personal representative will be required to produce evidence of his/her authority to act on your behalf before that person will be given access to your PHI or allowed to take any action for you. The Plan retains discretion to deny a personal representative access to your PHI to the extent permissible under applicable law. Complaints If you believe that your privacy rights have been violated, you have the right to express complaints to the Plan and to the Secretary of the Department of Health and Human Services. Any complaints to the Plan should be made in writing to the contact person named at the end of this Notice. The Plan encourages you to express any concerns you may have regarding the privacy of your information. You will not be retaliated against in any way for filing a complaint. Contact Information The plan has designated the Human Resources Department, 1-831-264-9400 as the contact person for all issues regarding the Plans privacy practices and your privacy rights. You can reach this contact person at: 20 Ryan Ranch Road, Monterey, CA 93940. 43

Continuation Coverage Rights Under COBRA Introduction You’re getting this notice because you are eligible to elect coverage under a group health plan (the Plan). This notice has important information about your right to COBRA continuation coverage, which is a temporary extension of coverage under the Plan. This notice explains COBRA continuation coverage, when it may become available to you and your family, and what you need to do to protect your right to get it. When you become eligible for COBRA, you may also become eligible for other coverage options that may cost less than COBRA continuation coverage. The right to COBRA continuation coverage was created by a federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA continuation coverage can become available to you and other members of your family when group health coverage would otherwise end. For more information about your rights and obligations under the Plan and under federal law, you should review the Excelligence Health and Welfare Plan or contact the Human Resources Department, 1-831-264-9400. You may have other options available to you when you lose group health coverage. For example, you may be eligible to buy an individual plan through the Health Insurance Marketplace. By enrolling in coverage through the Marketplace, you may qualify for lower costs on your monthly premiums and lower out-of- pocket costs. Additionally, you may qualify for a 30-day special enrollment period for another group health plan for which you are eligible (such as a spouse’s plan), even if that plan generally doesn’t accept late enrollees. What is COBRA continuation coverage? COBRA continuation coverage is a continuation of Plan coverage when it would otherwise end because of a life event. This is also called a “qualifying event.” Specific qualifying events are listed later in this notice. After a qualifying event, COBRA continuation coverage must be offered to each person who is a “qualified beneficiary.” You, your spouse, and your dependent children could become qualified beneficiaries if coverage under the Plan is lost because of the qualifying event. Under the Plan, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation coverage unless otherwise communicated by Excelligence Learning Corporation. If you’re an employee, you’ll become a qualified beneficiary if you lose your coverage under the Plan because of the following qualifying events: • Your hours of employment are reduced, or • Your employment ends for any reason other than your gross misconduct. If you’re the spouse of an employee, you’ll become a qualified beneficiary if you lose your coverage under the Plan because of the following qualifying events: • Your spouse dies; • Your spouse’s hours of employment are reduced; 44

• Your spouse’s employment ends for any reason other than his or her gross misconduct; • Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or • You become divorced or legally separated from your spouse. Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because of the following qualifying events: • The parent-employee dies; • The parent-employee’s hours of employment are reduced; • The parent-employee’s employment ends for any reason other than his or her gross misconduct; • The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both); • The parents become divorced or legally separated; or • The child stops being eligible for coverage under the Plan as a “dependent child.” When is COBRA continuation coverage available? The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the Plan Administrator has been notified that a qualifying event has occurred. The employer must notify the Plan Administrator of the following qualifying events: • The end of employment or reduction of hours of employment; • Death of the employee; • The employee’s becoming entitled to Medicare benefits (under Part A, Part B, or both). For all other qualifying events (divorce or legal separation of the employee and spouse or a dependent child’s losing eligibility for coverage as a dependent child), you must notify the Plan Administrator within 60 days, after the qualifying event occurs. You must provide this notice to: The Human Resources Department, 1-831-264-9400. How is COBRA continuation coverage provided? Once the Plan Administrator receives notice that a qualifying event has occurred, COBRA continuation coverage will be offered to each of the qualified beneficiaries. Each qualified beneficiary will have an independent right to elect COBRA continuation coverage. Covered employees may elect COBRA continuation coverage on behalf of their spouses, and parents may elect COBRA continuation coverage on COBRA continuation coverage is a temporary continuation of coverage that generally lasts for 18 months due to employment termination or reduction of hours of work. Certain qualifying events, or a second qualifying event during the initial period of coverage, may permit a beneficiary to receive a maximum of 36 months of coverage. There are also ways in which this 18-month period of COBRA continuation coverage can be extended: 45

Disability extension of 18-month period of COBRA continuation coverage If you or anyone in your family covered under the Plan is determined by Social Security to be disabled and you notify the Plan Administrator in a timely fashion, you and your entire family may be entitled to get up to an additional 11 months of COBRA continuation coverage, for a maximum of 29 months. The disability would have to have started at some time before the 60th day of COBRA continuation coverage and must last at least until the end of the 18-month period of COBRA continuation coverage. Second qualifying event extension of 18-month period of continuation coverage If your family experiences another qualifying event during the 18 months of COBRA continuation coverage, the spouse and dependent children in your family can get up to 18 additional months of COBRA continuation coverage, for a maximum of 36 months, if the Plan is properly notified about the second qualifying event. This extension may be available to the spouse and any dependent children getting COBRA continuation coverage if the employee or former employee dies; becomes entitled to Medicare benefits (under Part A, Part B, or both); gets divorced or legally separated; or if the dependent child stops being eligible under the Plan as a dependent child. This extension is only available if the second qualifying event would have caused the spouse or dependent child to lose coverage under the Plan had the first qualifying event not occurred. Are there other coverage options besides COBRA Continuation Coverage? Yes. Instead of enrolling in COBRA continuation coverage, there may be other coverage options for you and your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage options (such as a spouse’s plan) through what is called a “special enrollment period.” Some of these options may cost less than COBRA continuation coverage. You can learn more about many of these options at www.healthcare.gov. If you have questions Questions concerning your Plan, or your COBRA continuation coverage rights should be addressed to the contact or contacts identified below. For more information about your rights under the Employee Retirement Income Security Act (ERISA), including COBRA, the Patient Protection and Affordable Care Act, and other laws affecting group health plans, contact the nearest Regional or District Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) in your area or visit: www.dol.gov/ebsa . (Addresses and phone numbers of Regional and District EBSA Offices are available through EBSA’s website.) For more information about the Marketplace, visit www.HealthCare.gov. Keep your Plan informed of address changes To protect your family’s rights, let the Plan Administrator know about any changes in the addresses of family members. You should also keep a copy, for your records, of any notices you send to the Plan Administrator. Plan contact information The Human Resources Department 20 Ryan Ranch Road, Monterey, CA 93940 1-831-264-9400 46

PREPARED BY WILLIS TOWERS WATSON 525 Market Street, Suite 3400 San Francisco, CA 94105 Phone: 415-955-0100 Fax: 415-982-7978 License # 0371719